Changing jobs in Chapter 13

Letter to “Ask Leon”

My wife and I filed a chapter 13 bankruptcy last October. This spring I was on unemployment for about three months because of a work slowdown. We were allowed to work 60% of our unemployment. Now I vacation for three weeks and my job is still up in the air. I make 13.35 an hour plus benefits. I had an offer for a state job for 10.00 an hour plus benefits. This would be a secure job. Could I legally take this job and get my payments reduced? We pay 1900.00 a month and have 26 months left to pay. At 1900.00 a month our budget is really tight already. I’ve got my wife’s car that needs work and I don’t know where that money is going to come from. We’re not allowed much extra money for upkeep on vehicles or our house.

Leon Says…

It may be possible to reduce your Plan payments, but there is no way to answer this without making a complete review and analysis of your original filing. For example, Chapter 13 requires, among other things, that the value of your non exempt assets is paid over time into the Plan. I don’t know what your assets and exemptions are, so I don’t know if a reduction in your Plan payments would violate that rule. I don’t know why you are in a 13 as opposed to a 7. Please go and see a good local bankruptcy attorney right away for guidance. Most lawyers will give you a free consultation.